BPOL Comparison

In the Greater Richmond region, localities have the option to levy a license tax on most businesses. This license tax is usually levied on gross receipts. Rates vary by locality and type of business.

Hanover County boasts a distinct advantage: no business and professional occupation license (BPOL) tax, except for contractors. Hanover’s BPOL tax rate for contractors ($0.10 per $100 of gross receipts) is regionally competitive when compared to Chesterfield ($0.14 per $100 of gross receipts), Henrico ($0.15 per $100 of gross receipts) and Richmond ($0.19 per $100 of gross receipts).

BPOL Tax Rates in the Greater Richmond Region

Hanover (Outside of Ashland)

For gross receipts in excess of $100,000.

Business

Tax Rate (Per $100 of Gross Receipts)

Contractors only

$0.10

Ashland

No tax on first $1,000.

Business

Tax Rate (Per $100 of Gross Receipts)

$30 for gross receipts of $1,001 to $100,000 or $100,001 to $25 million

$0.07 plus

$25 million to $50 million

$0.05 plus

Over $50 million

$0.02

Chesterfield

For gross receipts of 0-$9,999, no tax; $10,000-$199,999, $10.

For gross receipts of $200,000 and above, the following tax rates apply; the first $200,000 is not taxed.

Business

Tax Rate (Per $100 of Gross Receipts)

Retail

$0.19

Wholesalers

$0.10 per $100 of gross purchase (maximum tax: $20,000)

Financial Services

$0.20 (maximum tax: $90,000)

Professional Services

$0.20

Business & Personal Services

$0.20

Contractors

$0.14

Biotech, R&D, Information Services

$0.10

R&D (Federal Contractors)

$0.03

Computer Services

$0.03

Software Development

Exempt

Henrico

Rates apply to amounts over the first $100,000.

Business

Tax Rate (Per $100 of Gross Receipts)

Retailers

$0.20 per $100

Wholesalers:

$1 to $100,000

$25 minimum tax

$100,001 to $5 million

$0.20

$5,000,001 to $15 million

$0.15

$15,000,001 to $25 million

$0.10

$25,000,001 to $50 million

$0.05

$50,000,001 to $100 million

$0.025

Professional Services

$0.20

Contractors (Contract-Based)

$0.15

Richmond

For gross receipts under $5,000, no tax; over $5,000 but less than $100,000, a $30 fee is imposed; for gross receipts of $100,000 or more: